On August 2, 2022 Veracyte, Inc. (Nasdaq: VCYT) reported that financial results for the second quarter ended June 30, 2022 (Press release, Veracyte, AUG 2, 2022, View Source [SID1234617282]).
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"Our second quarter results reflect our continued focus on execution, and as a result, our portfolio delivered robust revenue growth," said Marc Stapley, Veracyte’s chief executive officer. "In addition, we significantly expanded the library of clinical evidence demonstrating the performance and utility of our genomic tests and biopharma offerings, which we believe will help drive further test adoption and partnerships. We remain firmly focused on exercising financial discipline as we continue to invest in our near- and long-term growth opportunities to deliver on our strategic vision of improving outcomes for patients all over the world."
Key Business Highlights:
Increased second quarter total revenue by 32% to $72.9 million, compared to the second quarter of 2021;
Grew total test volume to 24,904, an increase of 19% compared to the second quarter of 2021;
Announced that an updated clinical guideline from the American Urological Association and American Society for Radiation Oncology features a favorable statement for genomic testing, including Decipher Prostate, to help guide care for men with localized prostate cancer.
Unveiled key clinical evidence across Veracyte’s portfolio:
Decipher Prostate – Data was published in Annals of Oncology reinforcing the clinical utility of the Decipher Prostate genomic classifier for helping to guide the timing and intensity of therapy in men experiencing prostate cancer recurrence following radical prostatectomy. Additionally, data unveiled at the 2022 ASCO (Free ASCO Whitepaper) Annual Meeting demonstrated that population-based prostate cancer treatment patterns are independently associated with Decipher classifier score;
Afirma Genomic Sequencing Classifier – Meta-analysis of independent, real-world studies were presented at ENDO 2022 demonstrating consistent and enhanced Afirma GSC performance, compared to the test’s original clinical validation study;
Prosigna Breast Cancer Assay – New consensus survey data presented at the ESMO (Free ESMO Whitepaper) Breast annual meeting showed that leading breast cancer oncologists in Europe agree on the value of gene expression profiling tests, such as Prosigna, and on the importance of molecular subtype information to help inform treatment decisions for patients with early-stage breast cancer;
Biopharma – New study findings presented orally at ASCO (Free ASCO Whitepaper) and in a paper published in Lancet Oncology showed the Immunoscore Immune Checkpoint (IC) biomarker’s ability to identify which patients will benefit from immune checkpoint inhibitors in metastatic non-small cell lung cancer and metastatic colorectal cancer, respectively; and
Percepta Nasal Swab – Data presented at the ATS annual meeting showed that the noninvasive genomic test performed similarly well across the spectrum of tobacco-related risk.
Ended the second quarter of 2022 with cash, cash equivalents and short-term investments of $164.0 million, compared to $166.4 million at the end of the first quarter of 2022.
Second Quarter 2022 Financial Results
Total revenue for the second quarter of 2022 was $72.9 million, an increase of 32% compared to $55.1 million in the second quarter of 2021. Testing revenue was $59.7 million, an increase of 18% compared to $50.8 million in the second quarter of 2021 driven primarily by the strong performance of our urology tests. Product revenue was $3.1 million, an increase of 16% compared to $2.7 million in the second quarter of 2021. Biopharmaceutical and other revenue was $10.0 million, an increase of $8.4 million compared to $1.6 million in the second quarter of 2021, driven primarily by the contribution of the HalioDx acquisition.
Total gross margin for the second quarter of 2022, including the amortization of acquired intangible assets, was 59%, compared to 62% in the second quarter of 2021. Non-GAAP gross margin, excluding the amortization of acquired intangible assets and other acquisition related expenses was 66%, compared to 68% in the second quarter of 2021.
Operating expenses, excluding cost of revenue, were $53.7 million, an increase of 29% compared to the second quarter of 2021. Non-GAAP operating expenses, excluding cost of revenue, amortization of acquired intangible assets and other acquisition related expenses, were $49.0 million compared to $38.0 million in the second quarter of 2021.
Second quarter 2022 net loss was $9.5 million, an increase of 5% compared to the second quarter of 2021. Basic and diluted net loss per common share was $0.13, flat to the second quarter of 2021. Net cash used by operating activities in the first six months of 2022 was $9.2 million, an improvement of $29.4 million compared to the same period in 2021.
A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures."
2022 Financial Outlook
The company is currently projecting full-year 2022 total revenue of $272 million to $280 million, representing year-over-year growth of 24% to 28% compared to the prior year, assuming currency rates as of August 2, 2022. This represents an improved outlook compared to our prior guidance of $265 million to $275 million.
Conference Call and Webcast Details
Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company’s financial results and provide a general business update. The conference call will be webcast live from the company’s website and will be available via the following link: View Source The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company’s website at View Source